Selectnet

V

Vinny1

I just finished reading the book Nasdaq Trader's Toolkit by Rogan Labier. The way i understood it, Selectnet orders preferenced to an ECN where the order is hidden and not displayed on Level 2 will not execute against it. Can anyone shed some light on this. Thanks.
 
Yes, and the light is... don't use Selectnet to hit an ECN.

Additionally, unless you are using OOUSs (Orders Of Unusual Size), don't use Selectnet to hit a MM -- use SuperSoes.

Bottom line, Selectnet is pretty much a dinosaur (as is the book).

JB
 
Thanks Turok for clearing that up but say Island or any other ECN has a hidden order to sell at 50 and let's say no Island orders come in to buy at 50 or higher, will the price on Level 2 bid higher than 50 leaving this hidden Island order to sell at 50 unexecuted?
 
Depends.

If the bid in question is from one of the "active" ECN's, it should be picked up. Otherwise, no.

JB
 
So you are saying that an active ECN like ARCA or REDI will pick up hidden ECN orders before going to the next available price, right?
 
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